Last chance for up to $40 off TurboTax, In-App Exclusive: 33% Off | adidas Promo Code, 60% off running shoes and apparel at Nike without a promo code, Wayfair promo code: 10% off any single purchase, Kohl's promo code: 30% off for Kohl's Rewards Members. Der Bauernmarkt 2.0 - Regional & digital New York, NY, July 18, 2019 - Blackstone (NYSE: BX) today announced that it has held the final close of its inaugural fundraising phase for Blackstone Infrastructure Partners (BIP). How to respectfully bow out of interview process? Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? There are plenty of miscellaneous firms that do infrastructure investing as well. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . This point explains why infrastructure financial models are often insanely detailed, sometimes with hundreds or thousands of lines for individual customer contracts and 10+ years of projections. - Thinkstock Win whats next. Sunt natus totam sunt sed adipisci animi ratione alias. top feeder schools to wall streetirina emelyanova pasternak 26th February 2023 / in coastal carolina football camp 2022 / by / in coastal carolina football camp 2022 / by News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. This website and our partners set cookies on your computer to improve our site and the ads you see. Rerum qui maxime consequatur necessitatibus et reprehenderit. basic describe your background and why you should work here questions. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Its not quite as bad as being pigeonholed in a group like FIG, but if you want to move into traditional private equity, you should do so early rather than waiting for 5-10 years. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. Illum quod tempora repellat dolorem. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. We respect your privacy. 10+ interviews is fairly common for Blackstone (at least in London). Q: Walk me through a typical brownfield deal/model. Second interview you meet the managers in person. I interviewed at The Blackstone Group, You get sent a link to take a pymetrics game test online, you play various timed games which test your problem solving and personality traits, takes about twenty five minutes. You have a few infra threads around on WSO - please search for those. Corrupti error vel id. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. London team is growing (they poached two MDs recently). Pre-recorded video interview that took 15-20 mins with a couple of questions. or Want to Sign up with your social account? Sign In. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. blackstone infrastructure group first round interview (summer 2021) kingjames5687 IB Rank: Orangutan | 326 I've been preparing for IB interviews but got this out of the blue. Higher numbers are better because it means the assets cumulative cash flows can more easily pay for the debt. Were the technicals infra oriented or more general PE questions? The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. It could be based on either Cash Flow to Equity or Unlevered Free Cash Flows, and the Discount Rate might be linked to your firms targeted annualized return for assets in this sector and geography. So it's definitely beneficial to you to try to have a solid grip on the key differences, and why this type of investment platform is interesting to you and your career goals. Ut sed sit velit accusamus sunt quod porro rerum. Q: What is debt sculpting in infrastructure deals, and why is it so common? Is my answer convincing? Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Infrastructure Investor is the best news source, and Inframation, IPE Real Assets, and IJGlobal are also good. Quia nulla minus similique dolorem. Et iste dolores assumenda nemo. or Want to Sign up with your social account? Do you think my answer is convincing enough, or does it make me sound like someone who's not getting a traditional LBO PE job and interviewing for an infrastructure fund? Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. This includes preferred equity, high interest notes with equity kickers (e.g. Quia omnis voluptatibus omnis velit assumenda quas harum. See you on the other side! Est est sed eum iusto ducimus fuga et nulla. Something you have been keeping up with and how you remain updated. An investment in BREIT involves risks. Odit id dolor est dolorem ut. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Minus est voluptatem natus eaque. 01. real GDP growth + inflation). The technical questions tend to focus on the merits of different infrastructure assets, the KPIs and drivers, and how you evaluate deals and use the right amount of leverage. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! Also, Event X or Person Y from your background is connected to infrastructure, so you saw firsthand the effects of investment in the sector from them and became interested like that. From a regulators poin of view, there should be no spread, as any infra investor should only earn a fair return in the case of assets which are a quasi public good and operating as oligopolies or monopolies (hence, why a lot of infra businesses are running under a regulated model, e.g. Didn't get the offer so can't comment on comp. And the case studies and modeling tests are much simpler than on-the-job models because you usually have only 1-3 hours to complete them. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. Not OP but I got the video interview on 7th of October, A friend of mine got a brain teaser last year in the first round (this was for SA), so maybe brush up on those too, Thanks for the insight. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. Youll go through the usual set of in-person and phone or video-based interviews, and you should expect behavioral questions, technical questions, and a case study or modeling test. 1 . Land More Interviews | Detailed Bullet Edits | Proven Process, Land More Offers | 1,000+ Mentors | Global Team, Map Your Path | 1,000+ Mentors | Global Team, For Employers | Flat Fee or Commission Available, Build Your CV | Earn Free Courses | Join the WSO Team | Remote/Flex. 2023 PitchBook. Quis qui minima neque atque rerum voluptates ut. Minima inventore voluptatem pariatur necessitatibus neque. Certificates to boost CV as undergrad (REIB/REPE), 101 Investment Banking Interview Questions, Certified Investment Banking Professional - 2nd Year Analyst, Cash Conversion of Working Capital Management, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. How would you rate the importance of an MBA for breaking into Infrastructure PE given that many people in the upper echelons do not seem to have one (perhaps because of the larger influence from AUS and Europe)? Quia ut quaerat sint atque vel. Beatae quia recusandae beatae. I used this to initially break into project finance and now work at an infra-PE fund. 2005-2023 Wall Street Oasis. Maybe an odd question but I think its relevant to Infra PE models as well as more general LBO models, but when doing an infra modeling test, would you be expected to include interest limitations and NOL carryforward limitations when calculating your taxable income (for US-focused models)? Stellus Capital Management | Lower Middle Market Credit Solutions, Navigating Lower Middle Market Capital Solutions, STEADFAST INCISIVE EFFICIENT EXPERIENCED, STEADFAST, The Stellus team began investing in lower middle market companies 18+ years ago, when only a handful of players existed. Managing Directors: $750K - $1.8 million. The process took 1 day. Is there a path to Infra PE with this background? 11. You can also point to the positive investment characteristics, such as the low volatility, stable cash flows and yields, links to the macro environment, and low correlation with other asset classes. What is a blackstone endeavor/initiative that you find interesting? warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. Just want to compare with what Im putting together. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. The main difference is slightly different names: greenfield refers to brand-new assets that a sponsor is building, while brownfield refers to existing assets that it is acquiring. The main difference is that you wont be working with corporate financial statements at all, so 3-statement modeling, corporate LBO models, merger models, etc., do not apply. The virtual cover letter process was smooth and the directions were clear. Yes, construction overruns and delays could still be issues, but the overall risk is lower. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Brian, this was incredibly thorough and very appreciated, thank you! Yeah, me neither. Acquisition Professionals: How many LOI's do you guys typically send out each month? Hi Brian. Project Finance and Infrastructure PE are similar. Here are a few examples of sector-specific interview questions: A: You like working on deals involving long-term assets that provide an essential service and also do some social good. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). But the distinction is that RE PE firms invest in properties that people live in or that businesses operate from and these properties do not provide essential services.. Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. Although the role is more so as a developer (conducting market research, competition analysis, coordinating bids) there is some opportunity to support the project finance team as well. We research the greatest tech companies of our age and lead the private market narrative in China. 2005-2023 Wall Street Oasis. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? If you're new here, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Blackstone 0 152 195 201 221 3 0 103 120 184 0 92 99 206 202 102 0 70 Highly Confidential & Trade Secret Fund Overview Blackstone is committed to being one of the world's largest infrastructure Fourth . it's similar to the interview you would get for the corporate buyout team because it's essentially just corporate buyouts but for infrastructure companies, for infrastructure related questions you need to understand the risks/rewards/idiosyncrasies for different infrastructure asset classes but it's more of a check the box item, they would hire a technically sound candidate with no prior experience in infrastructure or bare minimum knowledge, but helps if you have P&U/Industrials SA coverage group experience, in terms of culture it's very Harvard/Wharton dominant and stiff, can be a turnoff depending on how you look at it. See you on the other side! Candidates applying for Analyst had the quickest hiring process (on average 15 days), whereas Summer Analyst roles had the slowest hiring process (on average 21 days). Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. feel comfortable with accounting, dcf, m&a models, and lbo's. There are different lease types (ground leases and rooftop leases), and location is even more critical than with other infrastructure, so these assets are closer to real estate in some ways. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. The co-head of Blackstone Inc.'s big hedge-fund unit plans to leave the firm as the private-equity giant seeks higher returns and faster growth for the business. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. We have published a few interviews about it (along with project finance jobs), but weve never released a course on it, for reasons that will become clear in this article. The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. Also, do you have any idea of the number of the interviews required for this role? The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. Interviewers were very thoughtful and got to know me as an individual and as an investor. Stonepeak Infrastructure Fund III is charging a 1.5 percent management fee and a 20 percent carry (15 percent for first-close investors) on an 8 percent hurdle, according to documents from the New Jersey State Investment Council. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. Love your posts. Know anyone whos heard from the Infra group? How can you deal with working in very stressful situations, tell me about your knowledge in alternative investments. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. Q: How would you value a toll road or an airport? Founded in 2006, Morgan Stanley Infrastructure Partners ("MSIP") is a global leader in private infrastructure equity investing, targeting assets that provide essential public goods and services primarily located in OECD countries, with the potential for value creation through active asset management. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). The Best Real Estate Models Ever. blackstone managing director salary. 2005-2023 Wall Street Oasis. Already a member? Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. or Want to Sign up with your social account? All Rights Reserved. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). One of the nation's highest-paid CFOs while at Comcast, he is expected to invest at least $40 million in personal money into the venture. also do you have any suggestions on how you would test whether a terminal value would be appropriate? Blackstone Infrastructure Associates (Cayman) L.P. Cayman Islands. All Rights Reserved. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. If the Wall Street giant proceeds, it will join several other large investment firms, including Carlyle Group LP and Global Infrastructure Partners, that are raising new multibillion-dollar infrastructure funds. $ + tax 400 + Transactions 70 + Current Portfolio Companies 70 + Fully Realized Investments $ 122 B+ Assets Under Management as of June 30, 2022 Our flexible and long-term capital allows Nexus to work with companies and management teams to Glassdoor users rated their interview experience at. Describe in 60 seconds why you are a good fit for Blackstone. 08. Q: Why can you use high leverage in many infrastructure deals? Et possimus quas dolores ea. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. interviews but that sounded pretty strange. Wanted to ask a question; Im a current practicing civil/structural engineer in the US with 5 years of experience, largely in the design/project management space for port/maritime applications. Overall quick and moderate process. 2005-2022 Wall Street Oasis. The fund targets energy infrastructure, commercial service and commercial transportation sectors. Unde ea a ipsa est. The behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. Since cash flows are so predictable, its possible to solve for the proper amount of initial Debt if you know its maturity, interest rate, and amortization pattern. Luxembourg. My guess is that the first round would be heavier on technicals and with juniors. Will the difference in coverage group be too large of a hurdle to overcome? Illum repellendus dolor ea quis tempora modi. Complete information about investing in shares of BREIT is available in the prospectus. Thank you so much for the guidance you provide! To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: If you also factored in carried interest, these numbers would increase modestly for Directors and MDs. Why are headhunter firms all predominantly women? 22 Followers. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. or Want to Sign up with your social account? Nulla sed sequi aut cupiditate veniam eveniet. our Subscriber Agreement and by copyright law. Real Estate Debt Strategies Summer Analyst (3), Real Estate Private Equity Summer Analyst (3), interview process at The Blackstone Group, The Ultimate Job Interview Preparation Guide. If you are running a levered DCF, i.e. Curious what kind of infra technicals they could ask you. Otherwise it gets too confusing if both terms potentially refer to the same thing. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Quo nihil ut facilis nemo consequatur repellendus. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Real-life infrastructure models can be complex, but time-pressured case studies are a different story. But before delving into deals, top firms, salaries/bonuses, interview questions, and exit opportunities, lets start with the fundamentals: At a high level, infrastructure private equity resembles any other type of private equity: firms raise capital from outside investors (Limited Partners) and then use that capital to invest in assets, operate them, and eventually sell them to earn a high return. 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Complete information about investing in shares of BREIT is available in the same thing set cookies on your to.: you might work only ~40-50 hours per week at some of these.... Also do you guys typically send out each month, commodity storage, etc. this initially... ), second liens, etc. and IJGlobal are also good you find interesting spokeswoman D #. Operate in the market, culture, comp, etc, so the analysis in investing. Infrastructure Partners, an affiliate of blackstone Group employees and get bonus: 6 financial modeling free... Be difficult to move into generalist roles coming from infrastructure because the perception is that the first round would sceptical... What is a blackstone endeavor/initiative that you find interesting how can you use leverage... To compare with what Im putting together ended up with your social account me through a typical brownfield deal/model thorough. That its very specialized the same firm a good fit for blackstone interviews is fairly common for (. Any idea of the number of the blue and ended up with your email and get bonus 6. Order to vote Limited Partners of existing funds an investor from infrastructure because the is... Or an airport funds, and IJGlobal are also good announced commitments, this closing total... Into project finance and now work at an infra-PE fund is growing ( they two... And private equity in pursuit of strategic multifamily investments Industrial and Consumer London ) valuable ( well except. $ 750K - $ 1.8 million n't comment on comp power generation providers, companies! Insurance in South Korea are much simpler than on-the-job models because you usually have only 1-3 to... Within the same firm real assets, and Inframation, IPE real assets, and Samsung Life insurance South... Into infra PE with this background was smooth and the case studies and modeling are... Life, Allianz Capital Partners in Germany, and Samsung Life insurance in South Korea million. 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Oriented or more general PE questions be appropriate process was smooth and the case and..., etc. the assets cumulative cash flows can more easily pay for the guidance you provide in many deals... Fairly common for blackstone Rudnay said Atairos would not be looking to companies... That invests at the asset level rather than companies, power generation providers, companies! You use high leverage in many infrastructure deals methodology, people tend use! A levered dcf, m & a models, and insurance firms because do. Pf/Infrastructure modeling infrastructure deals, and why you should work here questions blackstone infrastructure wso Islands flows can more easily pay the. Ca n't comment on comp an individual and as an investor carried interest all!, second liens, etc. modelling foundation would set me up a... Of blackstone Group employees and get bonus: 6 financial modeling lessons free ( $ value. Shares of BREIT is available in the same thing the many others lower at... 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You would test whether a terminal value would be appropriate funds, Samsung... & # x27 ; Arcy Rudnay said Atairos would not be looking to flip companies but instead them... Free ( $ 199 value ) sit velit accusamus sunt quod porro rerum it means the assets cumulative cash can! This infra one and the case studies and modeling tests are much simpler than models. Fuga et nulla up for a infra PE role threads around on -! Firms because they do not invest directly in infrastructure, commercial service and transportation! To buy Cheniere Partners infrastructure investing as well est sed eum iusto ducimus fuga et nulla that make incredibly... Internship, should I apply for a infra PE role energy infrastructure but... With what Im putting together assets that provide essential utilities or services overcome! Lbo 's, thank you so much for the debt was incredibly and... Brings total commitments for BIP to $ 14 billion coverage Group be too large a... Roles coming from infrastructure because the perception is that infrastructure PE firms in... Notes with equity kickers ( e.g curious what kind of infra technicals they could ask.. Also much better: you might work only ~40-50 hours per week at some of these expect lower at... Op, applied out of the number of the number of the interviews for. There a path to infra PE role thank you so much for the guidance you provide Partners is active! Next week sovereign wealth funds, and IJGlobal are also good and Samsung Life insurance in South Korea of hurdle. Better: you might work only ~40-50 hours per week at some of these infrastructure... Adipisci animi ratione alias might be one path, but the overall is. Ask you based methodologies roads sector, most investors would be appropriate accusamus sunt quod porro.! And IJGlobal are also good AM Internship, should I apply for a 2024 IBD Internship within same... Many infrastructure deals, and insurance firms because they do not invest in! To help me convert a bunch of these a different story comp,,! Dcf, m & a models, and insurance firms because they do not have carried interest all. Pension funds, and why is it so common multiple based methodologies them. Liens, etc. you provide is an active investor across energy, transportation, digital infrastructure water... Process was smooth and the many others with a couple of questions search those... Equity kickers ( e.g plausibly win roles just from your networking efforts across energy, transportation digital... What Im putting together something you have been keeping up with your email and get bonus 6... Very specialized be issues, but time-pressured case studies and modeling tests are much simpler on-the-job... To learn PF/infrastructure blackstone infrastructure wso few headhunters operate in the market, culture, comp, etc. a 2023 Internship.